Three-row SUV royals hold court… against each other
When it comes to three-row midsize SUVs, two names consistently rise to the top: the Hyundai Palisade and the Toyota Highlander. Both offer conservative style, real room for the whole family, solid in-car technology, and excellent standard equipment and safety features. But the 2nd-generation Palisade is here now, and that means improvements across the board, as well as a fresh and full redesign. The Grand Highlander has cemented itself in the segment, even outselling its smaller Highlander sibling, and that’s no small feat.
We’ve driven the Grand Highlander multiple times, and it’s spectacular. Based on the specs, we’d have to say the new Palisade will give the Toyota a run for its money. The Grand Highlander is outselling the 2025 Palisade, but it’s neck-and-neck right now. Will the redesigned 2026 Palisade kick it in the tail section? Read on to find out which one of these capable mid-size three-row, family-friendly SUVs could be right for you.
Exterior design
The 2026 Hyundai Palisade builds on Hyundai’s bold design direction by upping the refinement on just about every part of the exterior. Whereas the 1st-gen SUV was still trying to figure out its aesthetics, the new one is far more cohesive and upscale. Its large grille, stacked LED headlights, and sharper body creases give it a premium, almost concept-car look. The refreshed styling helps it stand out in a crowded segment, and higher trims add larger wheels and chrome accents for an upscale touch. There’s no denying that the new Palisade has borrowed some styling cues from Land Rover, but it has made them its own.
The 2025 Toyota Grand Highlander takes a more practical approach, but it’s still a handsome vehicle. It lacks some of the regular Highlander’s curves but employs creases quite well. Compared to the standard Highlander, its longer body and extended wheelbase give it a commanding presence. Its design is clean and conservative, with Toyota’s latest front fascia and squared-off lines prioritizing function over flash. It’s handsome, but less striking than the Palisade. In certain trims with black wheels and accents, it almost looks sinister. Almost.
Interior comfort and space
The Palisade has long been praised for its luxurious cabin, and the 2026 version raises the bar further. Inside, you’ll find available quilted Nappa leather, a redesigned dash with a sleek dual-screen setup, a new column-mounted shift knob, and high-quality materials throughout. With seating for up to eight, the Palisade’s third row provides a little more legroom than last year’s model (32.1 inches versus 31.4), and second-row captain’s chairs add to the comfort on higher trims. The top Calligraphy trim comes with front seats that recline and feature an extendable footrest for maximum relaxation. The Grand Highlander doesn’t offer this feature.
The Grand Highlander earns its name by offering more space than both the regular Highlander and the Palisade. The third row is bigger than the Palisade’s, measuring 33.5 inches, and making seating for adults a reality. It’s a few more inches than the regular Highlander, too, and that means it’ll do more than just accommodate kids. Materials quality all over is excellent, bordering on Lexus-like. The wide and well-cushioned front seats are super-comfortable for long trips, and the support is good, as well.
Performance and powertrain
The gas Palisade has a 3.8-liter V6, producing 287 horsepower and paired with an eight-speed automatic transmission. That’s the same as the 2025 model. Power is smooth and more than adequate for daily driving, with available all-wheel drive if needed. The new Palisade will accelerate from 0 to 60 mph in 6.6 seconds, which is quick enough for a vehicle that can transport up to eight passengers when configured with second-row bench seats. For 2026, the Palisade gets a hybrid variant for the first time, featuring a turbocharged 2.5-liter four-cylinder engine combined with electric motors and a six-speed transmission for a combined output of 329 horsepower.
Toyota gives buyers more choice with the Grand Highlander. The standard engine is a 2.4-liter turbocharged four-cylinder with 265 horsepower, offering decent acceleration and efficiency. Families prioritizing fuel economy can opt for the Grand Highlander Hybrid, which uses a 2.5-liter four-cylinder and electric motors for 243 horsepower and up to 36 mpg combined—exceptional for a vehicle this size. For those who want performance, Toyota offers the Hybrid Max, a turbocharged hybrid setup delivering 362 horsepower and brisk 0-60 mph acceleration of 5.6 seconds. The Palisade’s single engine choice can’t hold a candle to the Grand Highlander’s wide range.
Technology and infotainment
The 2026 Palisade embraces high-end tech, with a standard 12.3-inch infotainment system, digital gauge cluster, and wireless smartphone integration. It’s the same setup as last year, but it really didn’t need an upgrade since the displays are vivid, responsive, and attractive. The only difference is that they are embedded within the dash now, giving the Palisade a more upscale look and feel. Higher trims add features like Bose premium audio, 65-color ambient lighting, Hyundai’s digital key, a head-up display, and rear-seat entertainment options. Hyundai’s latest interface is modern, crisp, and easy to use.
The Grand Highlander counters the Palisade with an available 12.3-inch touchscreen, wireless Apple CarPlay/Android Auto, and an optional 1,500-watt JBL audio. Toyota’s infotainment system is straightforward, though not as flashy as Hyundai’s curved dual-screen layout. It’s very easy to operate, and the switchgear for climate and audio is some of the best in the segment. Where the Grand Highlander shines is in family-focused features, like multiple USB-C ports across all three rows and thoughtful storage for devices.
Safety features
Hyundai equips the Palisade with its latest SmartSense suite, which includes features like Forward-Collision Avoidance, Lane-Keeping Assist, Safe Exit Assist, Adaptive Cruise Control, Blind-Spot Monitoring, and Rear Cross-Traffic Alert. For 2026, the Highway Driving Assist 2 system has been improved for smoother semi-autonomous driving on highways. This will be a boon for long-distance drivers, providing cutting-edge technology to reduce driver fatigue and thereby increase safety.
Toyota offers Toyota Safety Sense 3.0 standard on the Grand Highlander, and it’s a comprehensive system. This package includes a Pre-Collision System with Pedestrian Detection, Full-Speed Range Dynamic Radar Cruise Control, Automatic High Beams, Road Sign Assist, and Lane Departure Alert with Steering Assist. Toyota’s system is robust, reliable, and operationally excellent, but Hyundai’s updated semi-autonomous driving features give it a slight edge in terms of equipment.
Pricing and value
Hyundai
The 2026 Hyundai Palisade starts at $39,435 for the base SE trim and tops out with the $54,560 Calligraphy trim, which is decked out with high-end materials and plush accommodations. Given its upscale interior and luxury-like features, it offers excellent value. Hyundai also provides one of the strongest powertrain warranties in the industry, at 10 years/100,000 miles. Hyundai packs in a ton of value and provides standard features where others make them optional. Pricing for the Palisade Hybrid hasn’t been released yet, but it’s expected to have a higher starting price and a higher top trim price.
The 2025 Toyota Grand Highlander starts higher, at $41,360, with range-topping Hybrid Max models hitting just over $59,000. Toyota’s reputation for resale value is a strong plus, almost justifying the higher prices. The Palisade is also in its first year as a newly redesigned model, likely with some kinks that will have to be ironed out before a mid-cycle refresh. The Toyota, however, has a shorter 5-year/60,000-mile powertrain warranty that falls short of Hyundai’s.
Final thoughts
Both the 2026 Hyundai Palisade and 2025 Toyota Grand Highlander are excellent choices in the three-row SUV market, but they cater to different priorities. Choose the Hyundai Palisade if you want premium styling, a luxury-like cabin, advanced tech, and outstanding warranty coverage at a competitive price. Choose the Toyota Grand Highlander if maximum space and Toyota’s proven reputation for reliability and resale value are most important to you.
The Palisade feels like a near-luxury SUV, while the Grand Highlander is the ultimate family hauler with more room. Both vehicles offer a smooth driving experience, excellent standard features, and big family comfort. Regardless of which one you choose, it’s hard to go wrong.
About the author
Amos Kwon
Contributing Writer, Autoblog